Abstract

Based on the description of Independent director system, the paper is to study the differences about the origins of Independent director system between China and the United States and the differences between Independent director system and the Board of Supervisors System in China. And on this basis, the paper has tested that whether Independent director system has made contributions to the performance of the companies in Jiangsu province by using data of A-share companies. The empirical results show that, Independent director system of listed companies in Jiangsu province is in the state of failure, and fails to improve the performance of the company. At last, according to the empirical results, the reason of the failure is analyzed and the relevant policy suggestions are given.

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